Newcrest Managing Director and Chief Executive Officer, Sandeep Biswas, commented “following this extensive review we are pleased to be able to announce the sale of Bonikro to a consortium having the operating experience of the Forbes & Manhattan Group and the financial backing of the Africa Finance Corporation. This outcome delivers value for Newcrest shareholders and provides a clear future path for the Bonikro mine for the benefit of its employees, the community and all our Côte d’Ivoire stakeholders.”
The royalty applies to the first 560,000 ounces of gold production from the next pushback of the Bonikro pit following the completion date, at a rate of 2.5% for gold prices above US$1,251/ounce, increasing by 0.5% for every US$50 increase in the gold price up to 4.5% at US$1,450/ounce or above.
The economic effective date for the transaction will be 1 October 2017. Production until transaction completion will be included in Newcrest’s production results but the economic interest for the period after 1 October 2017 will be to the benefit of the acquirer. Newcrest’s guidance for FY18 will be updated following transaction completion.
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